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Type:

E-book, Lesson Plan

Description:

This lesson examines the October 5, 2012, U.S. Department of Labor, Bureau of Labor Statistics (BLS), announcement of employment data and the unemployment rate for the month of September, 2012. This lesson introduces more of the basic concepts of the BLS employment and unemployment data. The meaning and importance of the data are discussed. Assessment exercises are included for reinforcing knowledge of the concepts.

Current Key Economic Indicators

On a seasonally adjusted basis, the Consumer Price Index for All Urban Consumers was unchanged in January, as it was in December. The index for all items less food and energy rose 0.3 percent in January after rising 0.1 percent in December.

Total nonfarm payroll employment increased by 236,000 in February, and the unemployment rate edged down to 7.7 percent. Employment increased in professional and business services, construction, and health care.

Real gross domestic product increased at an annual rate of 0.1 percent in the fourth quarter of 2012 (that is, from the third quarter to the fourth quarter), according to the "second" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.1 percent.

To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent.

INTRODUCTION

Each month, the U.S. Bureau of Labor Statistics (BLS) releases data from the monthly "Household Survey" conducted by the Bureau of the Census, providing a comprehensive body of information on the employment and unemployment experience of the U.S. population, classified by age, sex, race, and a variety of other characteristics.

The BLS also conducts the Current Employment Statistics (CES) program, surveying about 150,000 businesses and government agencies, representing approximately 390,000 individual work sites, in order to provide detailed industry data on employment, hours, and earnings of workers on nonfarm payrolls.

The BLS compiles information from these sources and announces the monthly "Employment Situation," reporting the current U.S. employment and unemployment data estimates. The monthly announcement reports employment data from the previous full month.

This lesson is about the September, 2012, BLS announcement of the "Employment Situation" reported on October 5, 2012.

During the first half of the 2012-2013 school year, (September-December), EconEdLink will publish four Focus on Economic Data lessons on employment and the unemployment rate. During this time period, the lessons will begin with the 'basics' in September (this lesson) and progressively focus more on complex data, issues and comparisons. All monthly Focuses on Economic Data will include the current data and significant recent changes.

September 7, 2012: August 2012. Employment and unemployment data basics. What is employment? What is the unemployment rate? How are they measured? What is the current data? What do they mean?

October 5, 2012: September 2012. Details and issues about the measurement and meaning of employment and unemployment, adding concepts such as underemployment, full employment, etc. THIS LESSON

November 2, 2012: October 2012. Detailed breakdown of the data by region and industry (trends, identifying trends and comparisons of regions and demographic groups.

December 7, 2012: November 2012. The relationships of employment and unemployment data to other economic data, such as GDP, CPI, etc., and the business cycle, plus an end-of-year review.